DEF 14A of Patterson Uti Energy Inc, Apr 10, 2025

DEF 14A of Patterson Uti Energy Inc

Filed Apr 10, 2025 · FY20240001628280-25-017335

Open on EDGAR

  1. ELECTION OF DIRECTORS

    ELECTION OF DIRECTORS Directors are elected to serve until the next annual meeting of stockholders and until their successors are elected and qualified. Under Delaware law and Patterson-UTI’s bylaws, the affirmative vote of a plurality of shares present in person or represented by proxy at the meeting at which a quorum is present is required for the election of directors. The enclosed form of proxy provides a means for you to either: •vote “For All” with respect to the election of the nominees to the Board of Directors listed below, •withhold authority to vote for one or more of the nominees (i.e., "For All Except"), or •withhold authority to vote for all of the nominees (i.e., "Withhold All"). The Board of Directors recommends that you vote “FOR” all of the nominees. Unless you give contrary instructions in your proxy, your properly submitted proxy will be voted “For All” with respect to the election of all of the nominees to the Board of Directors. If any nominee should become unable or unwilling to accept the nomination or election, the person acting under the proxy will vote for the election of such other person as the Board of Directors may recommend. The Board has no reason, however, to believe that any of the nominees will be unable or unwilling to serve if elected. As noted below, Leslie A. Beyer has been appointed to serve as Assistant Secretary of Land and Minerals Management at the U.S. Department of the Interior. If her appointment is confirmed by the U.S. Senate, Ms. Beyer may be required to resign from the Board. The Company will promptly announce any such resignation in accordance with the applicable rules of the SEC. Because directors are elected by a plurality vote, shares as to which a stockholder withholds authority to vote and broker non-votes will not affect the outcome of the election, although a broker non-vote will be counted for purposes of establishing a quorum. Our corporate governance guidelines require that if a director receives in an uncontested election a greater number of “withhold” votes than votes cast “for” his or her election, the Nominating and Corporate Governance Committee of the Board of Directors will undertake a prompt evaluation of the appropriateness of the director’s continued service on the Board of Directors. In performing this evaluation, the Nominating and Corporate Governance Committee will review all factors it deems relevant, including the stated reasons why votes were withheld, the director’s length of service, his or her past contributions to Patterson-UTI and the availability of other qualified candidates. The Nominating and Corporate Governance Committee will then make its recommendation to the Board. The Board of Directors will review the Nominating and Corporate Governance Committee’s recommendation and consider such further factors and information as it deems relevant. The Board of Directors will act on the Nominating and Corporate Governance Committee’s recommendation no later than 90 days following the date of the stockholders’ meeting. If the Board of Directors determines remedial action is appropriate, the director shall promptly take whatever action is requested by the Board. If the director does not promptly take the recommended remedial action or if the Board of Directors determines that immediate resignation is in the best interests of Patterson-UTI and its stockholders, the Board of Directors may accept the director’s resignation that will have been tendered as follows. Each director will, as a condition to his or her appointment or election as a director or nomination as a director, agree in writing to comply with the terms of Patterson-UTI’s majority voting policy and provide to the Board of Directors an irrevocable resignation that will be effective upon (i) the failure to receive the required vote at the next annual meeting at which such director faces re-election and (ii) the Board of Directors’ acceptance of such resignation. Set forth below is the name, age, position and a brief description of the business experience during at least the past five years of each of the nominees to Patterson-UTI’s Board of Directors, as well as specific qualifications, attributes and skills of such member that were identified by the Nominating and Corporate Governance Committee when such member was nominated to serve on the Board of Directors. Each current member of Patterson-UTI’s Board of Directors is a nominee for election to the Board of Directors and was last elected at the 2024 annual meeting of stockholders. Other than the Governance Policy described below in “Consideration of Director Nominees and Governance Policy,” there are no arrangements or understandings between any person and any of the directors pursuant to which such director was selected as a nominee for election at the Meeting. There are no family relationships among any of the directors or executive officers of Patterson-UTI.

  2. ELECTION OF DIRECTORS

    | Name | Age | Position | Director Since | | Curtis W. Huff | 67 | Chairman of the Board and Director | 2001 | | Robert W. Drummond | 64 | Vice Chairman of the Board | 2023 | | William A. Hendricks, Jr. | 60 | President and Chief Executive Officer and Director | 2017 | | Leslie A. Beyer | 49 | Director | 2023 | | Tiffany (TJ) Thom Cepak | 52 | Director | 2014 | | Gary M. Halverson | 66 | Director | 2023 | | Cesar Jaime | 66 | Director | 2022 | | Janeen S. Judah | 65 | Director | 2018 | | Amy H. Nelson | 56 | Director | 2023 | | Julie J. Robertson | 69 | Director | 2022 | | James C. Stewart | 62 | Director | 2023 |

  3. ELECTION OF DIRECTORS

    The following charts show a snapshot of the average tenure, age and gender diversity, of the eleven nominees for election to our Board of Directors. The table below summarizes some of the skills and experience that the Board believes each director possesses and are relevant to such director’s Board and committee service. This summary is not intended to be an exhaustive list of each of our directors’ skills or contributions, and the lack of a checkmark for a particular item does not necessarily mean that the director does not possess that skill or experience.

  4. ELECTION OF DIRECTORS

    | | Beyer | Cepak | Drummond | Halverson | Hendricks | Huff | Jaime | Judah | Nelson | Robertson | Stewart | | SKILLS AND EXPERIENCE | | | | | | | | | | | | | Accounting and Finance Understanding of finance and public company financial reporting | | ✓ | ✓ | ✓ | ✓ | ✓ | | ✓ | ✓ | ✓ | ✓ | | Corporate Finance/Capital Markets Corporate finance, capital markets and/or merger and acquisition experience | | ✓ | ✓ | ✓ | ✓ | ✓ | | | ✓ | ✓ | ✓ | | Corporate Governance Corporate governance principles and process | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | | ✓ | ✓ | ✓ | ✓ | | Environmental and Safety Safety and environmental regulations | ✓ | ✓ | ✓ | ✓ | ✓ | | ✓ | ✓ | ✓ | ✓ | ✓ | | Global Management and/or work experience with businesses operating outside of the United States | ✓ | | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | | ✓ | ✓ | | Human Resource Management Human resource management and/or work experience | | | | | | | ✓ | ✓ | | ✓ | | | Independent Satisfies the independence requirements of Nasdaq and the Securities and Exchange Commission | ✓ | ✓ | ✓ | ✓ | | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | | Industry and Operations Operational and management experience in the oil and gas industry | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | | Leadership Business and strategic management experience from service in a leadership position, such as a CEO, COO, CFO or other senior leadership position of a significant operating unit | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | | ✓ | ✓ | | Legal Background Practiced law and/or has law degree | | | | | | ✓ | | ✓ | | | | | Prior Board Experience Service on public company boards | ✓ | ✓ | ✓ | | | ✓ | | ✓ | ✓ | ✓ | ✓ | | Risk Oversight Understanding significant risks facing companies | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | | Technology Developing and investing in new technologies | ✓ | | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | | ✓ | ✓ |

  5. ELECTION OF DIRECTORS

    When considering whether directors and nominees have the experience, qualifications, attributes and skills, taken as a whole, to enable the Board of Directors to satisfy its oversight responsibilities effectively in light of Patterson-UTI’s business and structure, the Nominating and Corporate Governance Committee and the Board of Directors focused primarily on the information discussed in each of the directors’ individual biographies set forth below.

  6. ELECTION OF DIRECTORS

    | | Curtis W. Huff — Mr. Huff has served as Chairman of the Board of Patterson-UTI since June 2020, as a director of Patterson-UTI since May 2001 and served as a director of UTI Energy Corp. (“UTI”) from 1997 to May 2001. Mr. Huff is owner and Chairman of Freebird Partners, a private investment firm created in 2002 that is focused on oilfield service companies and technology. Mr. Huff co-founded Intervale Capital, an oilfield service private equity firm, in 2006 and served as a Managing Director from 2006 to 2012, when he sold his interest in the firm. Mr. Huff also serves as Chairman of Impact Fluid Solutions LP, which provides drilling and production solutions for oil and gas operators and fluid companies. Mr. Huff also serves as a director at various of Freebird’s private portfolio companies. Mr. Huff served as the President and Chief Executive Officer of Grant Prideco, Inc., a provider of drill pipe and other drill stem products, from February 2001 to June 2002. From January 2000 to February 2001, Mr. Huff served as Executive Vice President, Chief Financial Officer and General Counsel of Weatherford International, Inc., one of the world’s largest international oilfield services companies. He served as Senior Vice President and General Counsel of Weatherford from May 1998 to January 2000. Mr. Huff began his professional career in 1983 with the law firm of Norton Rose Fulbright US LLP where he specialized in corporate, securities and merger and acquisition matters. Mr. Huff was made a partner in that firm in 1989 where he served until 1998 when he joined Weatherford. Mr. Huff holds a Bachelor of Arts degree and J.D. from the University of New Mexico, where he graduated as a member of the Order of the Coif and cum laude, and a Masters of Law from New York University School of Law. Mr. Huff is a past Chairman of the Board of Directors of the University of St. Thomas in Houston, Texas and is actively involved with various charities, including the Houston Food Bank. The Board of Directors considered Mr. Huff’s background as an executive of publicly traded oilfield services companies and as an owner and manager of a private investment firm focused on the oilfield service industry. The Board noted his knowledge and experience in a broad range of oilfield products and services and his current and historical experience in managing operations in both the United States and internationally. The Board also considered Mr. Huff’s expertise and background with regard to accounting and legal matters, which, among other things, provides guidance to Patterson-UTI in assessing its corporate governance structure, policies and procedures. | | | Robert W. Drummond — Mr. Drummond has served as Vice Chairman of the Board and a director of Patterson-UTI since September 2023. Mr. Drummond served as a member of the board of directors of NexTier Oilfield Solutions Inc. (“NexTier”), an oilfield service company that merged with the Company in September 2023, from August 2018 to September 2023. He joined NexTier in August 2018 as Chief Executive Officer and was elected as President in October 2019, which position he held until September 2023. Prior to joining NexTier, Mr. Drummond served as the President & Chief Executive Officer of Key Energy Services, Inc. and served for more than 30 years at Schlumberger Limited in various executive positions. Mr. Drummond has served as a director of Expro Group Holdings N.V. (“Expro”) since May 2017, and as Chairman of the Board of Expro since May 2024. He has previously served on the board of directors of the National Ocean Industries Association, the Houston Offshore Energy Center, the Greater Houston Partnership, the API Upstream Committee, and as an Advisory Board Member of the University of Houston Global Energy Management Institute. Mr. Drummond attained his B.S. in Mineral/Petroleum Engineering from the University of Alabama. The Board of Directors considered Mr. Drummond’s more than 30 years of leadership experience in the oil and gas industry, including his service as Chief Executive Officer and President of multiple oilfield service companies. The Board also considered Mr. Drummond’s experience in leading NexTier preceding its merger with Patterson-UTI, and the benefits to the Board from having Mr. Drummond’s institutional knowledge as a resource for the Board following the merger. In addition, the Board noted his extensive experience serving or previously serving on public company boards and on the board of directors of a variety of industry organizations. |

  7. ELECTION OF DIRECTORS

    | | William Andrew Hendricks, Jr. —Mr. Hendricks has served as President and Chief Executive Officer of Patterson-UTI since October 2012 and as a director of Patterson-UTI since June 2017. From April 2012 through September 2012, he served as Chief Operating Officer of Patterson-UTI. Prior to Patterson-UTI, Mr. Hendricks worked in a number of positions at Schlumberger for 24 years, where he last served as a drilling division President, having lived and worked around the world in the energy industry, offshore and onshore, and conducting business at times in Spanish and French. As CEO at Patterson-UTI, he has focused on transformation through investments in people and technology, growth through strategic acquisitions, improving recruiting and leadership development and also enhancing the company’s sustainability and ESG position. Mr. Hendricks attended Texas A&M University, receiving a Bachelor of Science degree in Petroleum Engineering, and then began his career working on an offshore drilling rig in the Gulf of Mexico for Ocean Drilling & Exploration Company (currently Diamond Offshore). Mr. Hendricks is a past Chairman of the International Association of Drilling Contractors, IADC Contractor of the Year in 2021, a member of the Society of Petroleum Engineers, an energy contributor on CNBC and has testified on energy matters with the U.S. Senate Committee on Energy and Natural Resources in Washington D.C. The Board of Directors considered Mr. Hendricks’ more than 30 years of combined operational and managerial experience in the oil and gas industry. In addition, the Board noted his nearly 12 years of service as Patterson-UTI’s President and Chief Executive Officer and nearly 10 years of service in numerous executive positions with Schlumberger Limited, a global provider of oilfield services, including nearly two years as President of Schlumberger Drilling & Measurements. The Board further considered Mr. Hendricks’ significant experience with evaluating the drivers for macro trends in the oil and gas industry, as well as managing the cyclical nature of the oil and gas service business, which allows Mr. Hendricks to provide valuable input into the development and implementation of Patterson-UTI’s corporate strategy. In addition, the Board noted that Mr. Hendricks’ operational experience brings valuable knowledge to the oversight of achieving safe and efficient operations. The Board also considered Mr. Hendricks’ significant experience working in numerous worldwide locations, which allows him to provide valuable counsel regarding possible expansion into new international markets. | | | Leslie A. Beyer — Ms. Beyer has served as a director of Patterson-UTI since September 2023. Ms. Beyer served as a member of NexTier’s board of directors from February 2023 to September 2023. Ms. Beyer has served as a director of Forum Energy Technologies since December 2023. In February 2025, Ms. Beyer was appointed, pending confirmation by the U.S. Senate, to serve as Assistant Secretary of Land and Minerals Management at the U.S. Department of the Interior. Ms. Beyer served as the Chief Executive Officer of the Energy Workforce & Technology Council (“EWTC”) from 2014 to 2023, the largest global energy technology and services association. She is a frequent speaker on issues facing the energy industry including the global energy market, regulatory environment and ESG best practices. Ms. Beyer has been an advocate for the energy services sector testifying before Congress and frequently appearing on national media outlets. She also serves on the Advisory Board of the Energy Advisory firm Veriten. Before joining EWTC, her career highlights include 15 years in Washington, D.C. serving in policy and public affairs roles in the U.S. Senate, multiple presidential campaigns, The White House – Executive Office of the President, U.S. State Department and U.S. Department of Housing and Urban Development. After government service, Ms. Beyer began a career in advocacy as Director, Member and Board Relations with the National Association of Manufacturers. Ms. Beyer holds a bachelor’s degree of arts in Latin American Studies from The University of Texas at Austin. The Board of Directors considered Ms. Beyer’s leadership and advocacy for responsible operations in the energy sector and extensive experience supporting the energy services sector, and the depth and perspective that such experience would bring to the Board. The Board also noted Ms. Beyer’s leadership as Chief Executive Officer of the Energy Workforce & Technology Council and her deep understanding of regulatory and environmental issues, which allows her to provide Patterson-UTI with valuable insight into industry issues. |

  8. ELECTION OF DIRECTORS

    | | Tiffany (TJ) Thom Cepak — Ms. Cepak has served as a director of Patterson-UTI since August 2014. Ms. Cepak has served as a director of Baytex Energy Corp., an upstream oil and gas company, since June 2023, as a director of California Resources Corporation, an upstream oil and gas company, since October 2020 (and as chair since April 2021). Ms. Cepak served as a director of EnLink Midstream, LLC, a midstream company, from December 2021 until its acquisition by ONEOK, Inc. in January 2025 and as a director of Ranger Oil Corporation, an upstream oil and gas company, from September 2019 until its acquisition by Baytex in 2023. Ms. Cepak served as the Chief Financial Officer of Energy XXI Gulf Coast, Inc., an upstream oil and gas company, from August 2017 to October 2018. Ms. Cepak served as the Chief Financial Officer of KLR Energy (and, subsequent to its business combination, Rosehill Resources Inc., an upstream oil and gas company) from January 2015 to June 2017. Ms. Cepak served as a director of Yates Petroleum Corporation, a privately owned, independent oil and gas exploration and production company, from October 2015 to October 2016. Ms. Cepak served four years as the Chief Financial Officer of EPL Oil & Gas, Inc., and was further appointed Executive Vice President in January 2014, and she served in those roles until June 2014, when EPL was sold. Ms. Cepak began her career with EPL as a Senior Asset Management Engineer, a position she held until she was appointed Director of Corporate Reserves in September 2001. Ms. Cepak was named EPL’s Director of Investor Relations in April 2006 and Vice President, Treasurer and Investor Relations in July 2008. In July 2009, Ms. Cepak was designated as EPL’s Principal Financial Officer and, in September 2009, she was appointed Senior Vice President. Ms. Cepak has more than 25 years of energy industry experience and prior to joining EPL, she was a Senior Reservoir Engineer with Exxon Production Company and ExxonMobil Company with operational roles including reservoir engineering and subsurface completion engineering for numerous offshore Gulf of Mexico properties. Ms. Cepak holds a B.S. in Engineering from the University of Illinois and a Masters of Business Administration in Management with a concentration in Finance from Tulane University. The Board of Directors considered Ms. Cepak’s more than 25 years of operational and financial experience in the energy industry. The Board noted her service in various operational roles, including as a reservoir engineer for a major oil and gas exploration and production company. The Board also noted Ms. Cepak’s executive management experience, including as chief financial officer of a publicly traded independent oil and gas exploration and production company, which allows her to provide Patterson-UTI with valuable insight on financial and strategic matters. The Board also considered Ms. Cepak’s diversity of perspective, which is exemplified by her recognition in 2018 as one of Oil and Gas Investor’s 25 Influential Women in Energy. | | | Gary M. Halverson — Mr. Halverson has served as a director of Patterson-UTI since September 2023. Mr. Halverson served as a member of NexTier’s board of directors from September 2016 to September 2023. In 2016, Mr. Halverson became a Senior Advisor at First Reserve, a private equity firm that focuses on energy investments, and a Partner at 360 Development Partners, a commercial real estate firm. Mr. Halverson was formerly Group President of Drilling and Production Systems and Senior Vice President at Cameron International Corporation from 2014 to 2016 prior to its sale to Schlumberger in 2016. He has over 38 years of industry experience with Cameron, where he worked in various leadership roles across the U.S., Latin America and Asia. Mr. Halverson currently serves as a director on the board of the General Committee of Special Programs of the American Petroleum Institute, as a director on the board of the Well Control Institute, as a director on the board of FlexSteel Pipeline Technologies, Inc. and was the U.S. delegate to the World Petroleum Congress. Mr. Halverson previously served as Chairman of the Board of Directors of the Petroleum Equipment Suppliers Association. The Board of Directors considered Mr. Halverson’s over 40 years of leadership and operational experience in the energy industry. The Board also noted Mr. Halverson’s extensive financial and investment experience, including as a senior advisor of an energy-focused private equity firm, which brings a valuable financial and strategic perspective to the Board. The Board also noted Mr. Halverson’s continued involvement in a variety of industry organizations, which brings a wide knowledge of industry perspectives to the Board. |

  9. ELECTION OF DIRECTORS

    | | Cesar Jaime — Mr. Jaime has served as a director of Patterson-UTI since April 2022. Mr. Jaime previously served on the board of Summum Group Ltd, a provider of well servicing and oil and gas engineering and construction in Colombia, Mexico and Peru, from 2014 to 2022. Mr. Jaime previously served on the board of LAREIF, a renewable energy developer in Colombia, from 2014 to 2019. Mr. Jaime served in various management positions at Schlumberger between 1981 and 2010, including serving as President of Schlumberger’s Latin America business from 2008 to 2010. Mr. Jaime has served on the board of Alliance Schlumberger, a non-profit organization grouping former Schlumberger engineers, since 2019. Mr. Jaime holds a Bachelor of Science degree in electrical engineering from Pontificia Universidad Javeriana in Bogotá, Colombia. The Board of Directors considered Mr. Jaime’s 30 years of experience in international oilfield services in Latin America, Europe and Africa for Schlumberger, including serving as President of Latin American operations. The Board also noted his international operations background in light of the Company’s drilling operations in Colombia and recent acquisition of Ulterra, which operates in many countries across the world. The Board also considered the breadth of his experience including in key management roles in operations, sales and human resource management. | | | Janeen S. Judah — Ms. Judah has served as a director of Patterson-UTI since April 2018. Ms. Judah has served as a director for privately held Aethon Energy III, LLC, an upstream oil and gas investment firm, since June 2019, and as a member of the University Lands Advisory Board since August 2020. Ms. Judah served as a director of the general partner of Crestwood Equity Partners LP, a midstream company, from November 2018 to November 2023, when Crestwood was acquired by Energy Transfer. Ms. Judah served as a director of Jagged Peak Energy Inc., an upstream oil and gas company, from April 2019 to January 2020, when Jagged Peak was acquired by Parsley Energy. Ms. Judah served as the President of the Society of Petroleum Engineers from September 2016 to October 2017 while on secondment from Chevron, and as a member of the Board of Directors of the Society of Petroleum Engineers from 2003 to 2006 and from 2012 to 2018. Ms. Judah held numerous leadership positions at Chevron, including general manager for Chevron’s Southern Africa business unit from August 2010 to September 2016, president of Chevron Environmental Management Company from August 2007 to August 2010 and general manager of reservoir and production engineering for Chevron Energy Technology Company from June 2004 to August 2007. Before joining Chevron in 1998, she held various upstream petroleum engineering positions for Texaco and Arco, starting in Midland in 1981. Ms. Judah holds Bachelor of Science and Masters of Science degrees in petroleum engineering from Texas A&M University, a Masters of Business Administration from the University of Texas of the Permian Basin and a Juris Doctorate from the University of Houston Law Center. Ms. Judah is a registered professional Engineer in Texas, currently serves on both the Texas A&M and University of Houston College of Engineering Advisory Councils, and has been a member of the Texas A&M Petroleum Engineering Industry Board since 1996. The Board of Directors considered Ms. Judah’s more than 35 years of operational, managerial and environmental experience in the oil and gas industry. The Board noted her experience derived from oil and gas industry positions held involving significant operational and management responsibilities, including positions with Chevron and upstream petroleum engineering positions. The Board also noted Ms. Judah’s extensive international experience, including most recently as general manager for Chevron’s Southern Africa business unit, which allows her to provide Patterson-UTI with valuable insight on international and strategic matters. The Board also considered Ms. Judah’s service as the President of the Society of Petroleum Engineers from 2017 to 2018, as well as her diversity of perspective, which is exemplified by her recognition in 2018 as one of Oil and Gas Investor’s 25 Influential Women in Energy. |

  10. ELECTION OF DIRECTORS

    | | Amy H. Nelson — Ms. Nelson has served as a director of Patterson-UTI since September 2023. Ms. Nelson served as a member of NexTier’s board of directors from October 2019 to September 2023. She is also the president of Greenridge Advisors, LLC, which she founded in 2007 as an energy services and equipment consulting firm focused on the development, execution, and financing of corporate and product line strategies. Ms. Nelson advises her clients on strategy development, capital allocation, acquisition evaluation and infrastructure development. Her clients span a broad range of oilfield service, product and geographic markets. She also joined the Helix Energy Solutions Group, Inc. board of directors and its audit committee in July of 2019, and in May of 2020 began serving as the chair of the audit committee. Ms. Nelson served as a member of APA Corporation's board of directors from February 2014 until May 2024. Ms. Nelson began her career at Amoco Production Company in a variety of engineering, project management and planning roles. From 2000 to 2007, Ms. Nelson served as a vice president of SCF Partners, an oilfield service and equipment-focused private equity firm, where she concentrated on investment strategy, investment execution and portfolio company management. During her tenure at SCF Partners and Greenridge Advisors, Ms. Nelson has served on the board of directors of several private companies. Ms. Nelson has devoted her career to serving companies in the oil and gas industry. The Board of Directors considered Ms. Nelson’s extensive oilfield service experience through her founding and leadership of an energy services and equipment consulting firm, as well as her financial and strategic experience gained through her service at an oilfield service and equipment-focused private equity firm. The Board also considered Ms. Nelson’s extensive board of directors experience as a result of currently serving or previously serving on public company boards and a variety of private company boards, bringing valuable corporate governance, sustainability and oversight experience to the Board. | | | Julie J. Robertson — Ms. Robertson has served as a director of Patterson-UTI since April 2022. Ms. Robertson has served as a director of EOG Resources, Inc., an upstream oil and gas company, since January 2019, and as a director of Seadrill Limited, an offshore drilling contractor, since November 2021. Ms. Robertson served as a director of Superior Energy Services, Inc., an oilfield services company, from February 2021 until March 2025. Ms. Robertson served in the role of Executive Chairman of Noble Corporation plc (“Noble”), an offshore drilling contractor, from May 2020 until her retirement from Noble in February 2021. Previously, Ms. Robertson served as Chairman of the Board, President and Chief Executive Officer of Noble from January 2018 until May 2020. Ms. Robertson previously served in various other management roles for Noble and its subsidiaries, including (i) Executive Vice President from 2006 to January 2018, (ii) Senior Vice President — Administration from 2001 to 2006 and (iii) Vice President — Administration from 1996 to 2001. Ms. Robertson also served continuously as Corporate Secretary of Noble from 1993 until assuming the Chairman’s role in 2018. Ms. Robertson joined a predecessor subsidiary of Noble in 1979. Ms. Robertson holds a Bachelor of Journalism degree from the University of Texas at Austin and successfully completed the Harvard Business School Advanced Management Program in 1998. The Board of Directors considered Ms. Robertson’s more than 40 years of operational, managerial, administrative and human resource experience at a leading global offshore drilling contractor, including as the Executive Chair and as the Chair of the Board, President and Chief Executive Officer. The Board noted Ms. Robertson’s extensive international experience, including working in over 45 countries, her experience in mergers and acquisitions and her experience in global compliance and risk mitigation, executive compensation, governance and sustainability matters and supply chain management. Ms. Robertson also has extensive board of directors experience as a result of currently serving or previously serving on four public company boards. The Board also considered Ms. Robertson’s recognition as 2013 Drilling Contractor of the Year by the International Association of Drilling Contractors, and her recognition in 2020 as one of Oil and Gas Investor’s 25 Influential Women in Energy. |

  11. ELECTION OF DIRECTORS

    | | James C. Stewart— Mr. Stewart has served as a director of Patterson-UTI since September 2023. Mr. Stewart served as a member of Keane’s and, subsequently, NexTier’s board of directors from March 2011 to September 2023. He joined Keane (predecessor to NexTier) in March 2011 as Chairman and Chief Executive Officer and served as Executive Chairman from August 2018 to October 2019. Mr. Stewart has served as Chief Executive Officer of One X, a provider of flowback, production and sand management, and pressure control equipment rentals and associated services, since October 2023. Prior to joining Keane, from 2007 to 2009, he served as the President and Chief Executive Officer of a privately held international drilling company. From 2006 to 2007, Mr. Stewart served as Vice President of Integrated Drilling Services for Weatherford International plc, based in London and Dubai, where he created and managed a global business unit that included a 50-rig international land contract drilling group and a global project management team. Mr. Stewart began his career with Schlumberger Limited, where he held senior leadership positions across the globe over the span of 22 years. The Board considered Mr. Stewart’s more than 30 years of leadership experience in the oilfield services industry, including his service as former Chief Executive Officer of NexTier and of another oilfield service company. The Board also considered his extensive international experience and management of global business and project management teams, which brings perspective to the Board and allows him to provide Patterson-UTI with valuable insight on international and strategic matters. |

  12. ELECTION OF DIRECTORS

    | Board Leadership Structure and Independent Chairman |

  13. ELECTION OF DIRECTORS

    The Board evaluates its leadership structure on an ongoing basis. The decision on whether to combine or separate the Chairman and Chief Executive Officer (“CEO”) role is determined on the basis of what the Board considers to be best for Patterson-UTI at any given point in time. Patterson-UTI’s current Board leadership structure separates the role of Chairman and CEO, and our Chairman is an independent director. In addition to having an independent Chairman, the Board has an independent Vice Chairman who works with the independent Chairman to provide independent oversight and leadership of the Board. The independent directors meet regularly in executive sessions at which only independent directors are present, and the Chairman chairs those sessions. The Chairman serves as a liaison between the independent directors and any employee directors, consults with regard to Board and agenda items, and works with the chairpersons of Board committees as appropriate. The Chairman also participates from time to time in meetings with large stockholders. The Nominating and Corporate Governance Committee and the Board currently believe that the Board’s leadership structure, which includes the separation of the role of CEO and Chairman, is appropriate because it, among other things, provides for sufficient independence between the Board and management and for an independent director who provides board member leadership.

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    | Board Role in Risk Oversight |

  15. ELECTION OF DIRECTORS

    The Board has adopted Corporate Governance Guidelines, which can be accessed electronically in the “Governance” section of Patterson-UTI’s website at www.patenergy.com. The Guidelines describe one of the Board’s primary responsibilities as overseeing Patterson-UTI’s processes for assessing and managing risks. The Board delegates to its committees responsibility for overseeing certain types of risk, as reflected in the chart below, and the committees in turn report regularly to the Board on their respective areas of oversight.

  16. ELECTION OF DIRECTORS

    | Board of Directors •The Board oversees assessment of major risks facing the Company and, to the extent the Board deems it appropriate, evaluates options for their mitigation. The risks that the Board routinely oversees, either directly or by delegating to a committee, include those related to safety, operations, financial matters, strategy, technology, competition, legal and regulatory matters, and sustainability matters, including climate change-related matters. •The Board and its committees discharge their oversight responsibility, in part, through regular inquiries from the Chairman of the Board and other directors to senior management, regular discussions during Board and committee meetings of general and specific risks to Patterson-UTI, and periodic communications with senior management regarding particular risks and events. •The Board oversees risk management by our senior management team, in part, by reviewing and evaluating major financial objectives, critical strategies, and long-term plans, including major allocations of capital, significant proposed business acquisitions and divestitures, safety and operating performance, sustainability performance, and stockholder returns. |

  17. ELECTION OF DIRECTORS

    | Audit Committee | Compensation Committee | Nominating and Corporate Governance Committee | Sustainability Committee | | •Financial statements and internal controls •Independent auditors and internal audit function •Financial reporting process •Legal and ethics compliance programs •Sustainability disclosures in SEC reports and financial statements •Cybersecurity | •Compensation policies and related risks •Compensation of executive officers, including KPIs •Incentive compensation plan administration •CD&A and report in proxy statement | •Corporate governance guidelines and code of business conduct •Review of board performance •Recommendation of director nominees and committee composition •Executive succession planning •Assistance with governance-related sustainability issues, including climate-related risks and opportunities | •Sustainability risks and opportunities, including climate-change related matters •Sustainability report and related disclosure issues •Sustainability-related strategy, policies and practices •Health, safety and environmental protection policies; related risks •Human and workplace rights and policies, including diversity and inclusion policies and human capital management |

  18. ELECTION OF DIRECTORS

    | Senior Management Day-to-day responsibility for: •Identifying corporate risks, including climate-related risks and opportunities •Assessing the potential level of impact to the business from such risks •Implementing appropriate risk management strategies, including integrating consideration of risk and risk management into business decision-making •Reviewing the effectiveness of our risk management efforts |

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    | Management's Role in Risk Management |

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    Our senior management identifies risks and opportunities through discussions with employees and other stakeholders, including customers, investors, trade associations and industry groups; engagement with environmental, social and governance (ESG) groups; and our own business risk assessments, as well as regular monitoring of legal, regulatory and policy changes with the potential to affect the industry as well as our company specifically. We believe that climate risks are inherently business risks, and our assessment of these climate-related transition and physical risks is integrated into our business risk assessment process. Our senior management and representatives from our business units regularly communicate with the Board on risk management matters. Senior management conducts regular risk assessments to identify risks that have the potential to significantly affect our business over the short-, medium- and longer term and reviews with the Board risk mitigation and oversight measures, including prioritization of risk management and allocation of responsibility within the Company for the management of a particular risk.

  21. ELECTION OF DIRECTORS

    | Meetings and Committees of the Board of Directors; Director Independence |

  22. ELECTION OF DIRECTORS

    | Meetings |

  23. ELECTION OF DIRECTORS

    The Board of Directors met nine times during the year ended December 31, 2024. Each then-serving director attended, in person or by telephone, at least 75% of the aggregate of all meetings held by the Board and meetings of each committee on which such director served. Although Patterson-UTI does not have a formal policy regarding attendance by members of the Board at its annual meetings of stockholders, directors are invited to attend annual meetings of Patterson-UTI stockholders. All but two of our directors attended the 2024 annual meeting of stockholders either in person or by telephone.

  24. ELECTION OF DIRECTORS

    | Director Independence |

  25. ELECTION OF DIRECTORS

    A majority of the members of the Board of Directors are independent within the meaning of the Nasdaq Stock Market, Inc. (“Nasdaq”) listing standards. Specifically, the Board has determined that Messrs. Drummond, Halverson, Huff, Jaime and Stewart and Mses. Beyer, Cepak, Judah, Nelson and Robertson are independent within the meaning of the Nasdaq listing standards. In making its independence determinations, the Board considered transactions occurring since the beginning of 2024 between Patterson-UTI and entities associated with the independent directors or their immediate family members. The Board considered that since October 2023, Mr. Stewart has been employed by an organization that does business in the ordinary course with a subsidiary of Patterson-UTI. The amount received by Patterson-UTI or such other organization in each of the last three fiscal years did not exceed the greater of $200,000 or 1% of either Patterson-UTI’s or such organization’s consolidated gross revenues.

  26. ELECTION OF DIRECTORS

    | Committees of the Board of Directors |

  27. ELECTION OF DIRECTORS

    The Board of Directors has established five standing committees: an Executive Committee, an Audit Committee, a Compensation Committee, a Nominating and Corporate Governance Committee and a Sustainability Committee. The Board of Directors has adopted a written charter for the Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee and Sustainability Committee.

  28. ELECTION OF DIRECTORS

    | Executive Committee | | | Current Composition: Messrs. Huff (chair), Drummond and Hendricks Number of Meetings during 2024: None | The Executive Committee has the authority, to the extent permitted by applicable law, to act for the Board in all matters arising between regular or special meetings of the Board of Directors. |

  29. ELECTION OF DIRECTORS

    | Audit Committee | | | Current Composition: Mses. Cepak (chair), Judah and Robertson, and Messrs. Halverson, Jaime and Stewart Number of Meetings during 2024: Five | Primary oversight and responsibilities: •oversee management’s execution of Patterson-UTI’s accounting and financial reporting process, including review of the financial reports and other financial information provided by Patterson-UTI to the public and government and regulatory bodies •review system of internal accounting, financial controls, and the annual independent audit of Patterson-UTI’s financial statements •review system of internal control over financial reporting •review cybersecurity risks with management •oversee compliance with Patterson-UTI’s codes of conduct and ethics and with legal and regulatory requirements •select the independent registered public accounting firm to audit Patterson-UTI's books and records •consider and act upon accounting matters as they arise | | Each member is independent within the meaning of applicable rules under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and within the meaning of the Nasdaq listing standards. The Board has determined that Ms. Cepak is an “audit committee financial expert” within the meaning of applicable SEC rules. Please see “Audit Committee Report” elsewhere in this proxy statement. | |

  30. ELECTION OF DIRECTORS

    | Compensation Committee | | | Current Composition: Messrs. Halverson (chair) and Huff and Mses. Cepak and Nelson Number of Meetings during 2024: Eight | Primary oversight and responsibilities: •set and administer the policies that govern the compensation of executive officers of Patterson-UTI •periodically review director compensation and recommend changes, as appropriate, to the Board of Directors for approval | | Each member is independent as defined in the Nasdaq listing standards. Please see “Compensation Discussion and Analysis” and “Compensation Committee Report” elsewhere in this proxy statement for further information about the Compensation Committee. | |

  31. ELECTION OF DIRECTORS

    | Nominating and Corporate Governance Committee | | | Current Composition: Mses. Robertson (chair) and Beyer and Messrs. Huff and Stewart Number of Meetings during 2024: Two | Primary oversight and responsibilities: •identify individuals qualified to become Board members •recommend for selection by the Board director nominees for the annual meetings of stockholders •recommend nominees for Board committees •review succession planning for executive officers of the Company •review Patterson-UTI’s Code of Business Conduct and Corporate Governance Guidelines •develop and make recommendations with respect to the best corporate governance principles •oversee the annual review of the Board and management •assist the Board’s Sustainability Committee in its oversight of governance-related sustainability issues, including climate-related risks and opportunities | | Each member is independent as defined in the Nasdaq listing standards. | |

  32. ELECTION OF DIRECTORS

    | Sustainability Committee | | | Current Composition: Mses. Nelson (chair), Beyer and Judah and Messrs. Drummond, Jaime and Stewart Number of Meetings during 2024: Five | Primary oversight and responsibilities: •review significant policies and performance and provide guidance on matters relating to sustainability •oversee and monitor the Company’s vision and values relating to sustainability •advise the Board and management on significant public issues related to sustainability matters •assist management in setting strategy, establishing goals and integrating sustainability into strategic and tactical business activities across the Company to create long-term stockholder value •review and recommend to the Board for approval any sustainability reporting to the public or governmental agencies | | Each member is independent as defined in the Nasdaq listing standards. | |

  33. ELECTION OF DIRECTORS

    | Consideration of Director Nominees and Governance Policy |

  34. ELECTION OF DIRECTORS

    On behalf of the Board, the Nominating and Corporate Governance Committee considers director nominees recommended by Patterson-UTI’s stockholders if the recommendations are made in accordance with all legal requirements, including applicable provisions of Patterson-UTI’s restated certificate of incorporation and bylaws. A stockholder’s notice to the Secretary of Patterson-UTI shall contain certain information specified in Patterson-UTI’s bylaws regarding the stockholder and the proposed nominee. See “Other Matters—Stockholder Proposals for 2026 Annual Meeting” and Article I, Section 8 and Article I, Section 11 of Patterson-UTI’s bylaws. The number of directors may be fixed or changed by amendment of Patterson-UTI's bylaws or by resolution of the Board. The Board assesses periodically, in connection with director refreshment and other considerations, whether a larger or smaller number of directors would be preferable. The Nominating and Corporate Governance Committee determines qualification criteria and procedures for the identification and recruitment of candidates for election to serve as directors of Patterson-UTI. The Nominating and Corporate Governance Committee relies on the knowledge and relationships of Patterson-UTI and its officers and directors, as well as third parties when it deems appropriate, to identify and evaluate nominees for director, including nominees recommended by stockholders (which are evaluated in the same manner as nominees identified by other sources). In evaluating a nominee for director, the Nominating and Corporate Governance Committee considers the nominee’s skills, expertise, industry and other knowledge, personal and professional ethics, integrity and values, sound business judgment and willingness to commit sufficient time to the Board and be committed to representing the long-term interests of Patterson-UTI’s stockholders. The Nominating and Corporate Governance Committee also reviews the individual performance and qualifications of each director who wishes to be considered for nomination to the Board. Although the Nominating and Corporate Governance Committee does not have a stand-alone policy with regard to consideration of diversity in identifying director nominees, it is required, in accordance with our Corporate Governance Guidelines, to consider diversity in professional background, experience, expertise (including as to financial matters) and perspective (including as to age, gender and ethnicity) with respect to the Board of Directors composition as a whole when evaluating a director nominee. The Board assesses its effectiveness in this regard as part of the annual board and director evaluation process. In connection with the closing of the NexTier merger in September 2023, the Board adopted a Governance Policy that sets forth certain requirements on the Board and its composition for a period of two years following completion of the NexTier merger. The Governance Policy provides that, at each of the 2024 and 2025 annual meetings of stockholders, the Patterson-UTI Board will re-nominate each Patterson-UTI and NexTier designee then serving on the Patterson-UTI Board for re-election by stockholders, subject to certain exceptions. In addition, until September 1, 2025, (i) the Nominating and Corporate Governance Committee will have an equal number of Patterson-UTI and NexTier designees, (ii) all other committees will have at least one NexTier designee, such that the membership of all the committees (excluding the Executive Committee) of the Patterson-UTI Board, taken as a whole, will have an equal number of Patterson-UTI and NexTier designees and (iii) the Executive Committee will consist of the Chairman, Vice Chairman and Chief Executive Officer. Mses. Cepak, Judah and Robertson and Messrs. Huff, Hendricks and Jaime are the current Patterson-UTI designees, and Mses. Nelson and Beyer and Messrs. Drummond, Halverson and Stewart are the current NexTier designees.

  35. ELECTION OF DIRECTORS

    | Board and Director Performance Assessments |

  36. ELECTION OF DIRECTORS

    The Nominating and Corporate Governance Committee annually reviews and evaluates the performance of the Board, each Committee of the Board, and each director in order to improve the effectiveness of the Board and each Committee of the Board. The Committee assesses the contributions of the Board as a whole and each of its Committees and identifies areas in which improvements may be made. The results of the evaluations are reviewed and discussed with the Board and its Committees, and recommendations are made, as appropriate, to the Board and its Committees. The Nominating and Corporate Governance Committee also annually reviews the individual performance and qualifications of each director who wishes to be considered for nomination for reelection to the Board.

  37. ELECTION OF DIRECTORS

    | Continuing Education |

  38. ELECTION OF DIRECTORS

    Continuing education helps our directors strengthen their skills, deepen their understanding of our business and operations and stay current with emerging issues that affect our business, governance and compensation practices. It also helps directors keep abreast of governance developments and requirements and understand the issues we face in the context of our business. To further these goals, our Board’s continuing director education policy requires directors to participate in continuing education programs and reimburses directors for expenses incurred in connection with such education programs.

  39. ELECTION OF DIRECTORS

    | Succession Planning |

  40. ELECTION OF DIRECTORS

    The Board of Directors oversees processes and procedures to provide continuity of well-qualified executive leadership and to assess whether such leadership possesses the skill and talent to execute Patterson-UTI’s long-term business strategies. The Board of Directors reviews succession planning for the Chief Executive Officer and the senior executives tailored to reflect the Board’s standards for executive leadership and Patterson-UTI’s business strategy and vision. The succession planning addresses (i) both current and long-term needs of Patterson-UTI and establishes a process for identifying and assessing potential internal candidates; (ii) periodic review and assessment of readiness; (iii) contingency planning for temporary absences of the Chief Executive Officer due to disability or other unexpected event; and (iv) long-term continuity planning for succession to the Chief Executive Officer position.

  41. ELECTION OF DIRECTORS

    | Political Contributions |

  42. ELECTION OF DIRECTORS

    Patterson-UTI has a policy prohibiting the contribution of company funds to political parties or organizations or to candidates for any public office or to influence the general public, or segments thereof, with respect to public elections or referenda. Patterson-UTI participates in certain trade organizations with purposes that include enhancement of the public image of our industry, education about the industry and issues that affect the industry and industry best practices and standards. Many of the trade organizations also engage in legislative or political activity related to matters that affect the industry as a whole and not a specific company. Patterson-UTI, as one of many members in various trade associations, does not direct the legislative activities of any trade organization of which it is a member.

  43. ELECTION OF DIRECTORS

    | Sustainability |

  44. ELECTION OF DIRECTORS

    We encourage you to review our latest sustainability report for information regarding our sustainability programs and initiatives. A copy of Patterson-UTI’s sustainability report can be accessed electronically in the “Sustainability” section of the Patterson-UTI website at www.patenergy.com and in print to any stockholder who requests it from the Secretary of Patterson-UTI. Nothing on our website, including our sustainability report or sections thereof, shall be deemed incorporated by reference into this proxy statement or other filings that we make with the SEC. Our ESG goals are aspirational and may change. Statements regarding our goals are not guarantees or promises that they will be met. Patterson-UTI’s Code of Business Conduct and Ethics and Equal Employment Opportunity and Anti-Harassment Policy prohibit discrimination or harassment of any type and afford equal employment opportunities to all employees and applicants, without regard to age, race, sex, color, religion, national origin, disability, marital status, covered veteran status, genetic information, sexual orientation, gender identity or any other characteristic protected under state, federal or local law. Each employee is expected to demonstrate a shared commitment to Patterson-UTI’s values regarding diversity and inclusion, as well as mutual respect for all co-workers, vendors, customers, third parties, and business partners.

  45. ELECTION OF DIRECTORS

    | Communication with the Board and its Independent Members |

  46. ELECTION OF DIRECTORS

    Persons may communicate with the Board, or directly with its Chairman, Mr. Huff, by submitting such communication in writing in care of Chairman of the Board of Directors, Patterson-UTI Energy, Inc., 10713 West Sam Houston Parkway North, Suite 800, Houston, Texas 77064. Persons may communicate with the independent members of the Board by submitting such communication in writing to the Nominating and Corporate Governance Committee of the Board of Directors of Patterson-UTI Energy, Inc., 10713 West Sam Houston Parkway North, Suite 800, Houston, Texas 77064.

  47. ELECTION OF DIRECTORS

    | Insider Trading Policy |

  48. ELECTION OF DIRECTORS

    Patterson-UTI has adopted an Insider Trading Compliance Policy and Insider Trading Compliance Memorandum that set forth policies and procedures governing the purchase, sale, and other transactions in Company securities by directors, officers, employees and consultants, and persons related to directors, officers, employees and consultants. These policies and procedures, as well as procedures that the Company follows, are reasonably designed to promote compliance with insider trading laws, rules, and regulations and applicable listing standards. A copy of the Insider Trading Compliance Policy and Insider Trading Compliance Memorandum were filed as Exhibit 19.1 and 19.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

  49. ELECTION OF DIRECTORS

    | Corporate Governance Documents Available on Patterson-UTI’s Website |

  50. ELECTION OF DIRECTORS

    Copies of each of the following documents can be accessed electronically in the “Corporate Governance” section of the Patterson-UTI website at www.patenergy.com and in print to any stockholder who requests them from the Secretary of Patterson-UTI: •Audit Committee Charter; •Compensation Committee Charter; •Nominating and Corporate Governance Committee Charter; •Sustainability Committee Charter; •Corporate Governance Guidelines; •Governance Policy; •Code of Business Conduct and Ethics for its employees, officers and directors; •Code of Business Conduct and Ethics for Senior Financial Executives; and •Global Anticorruption Policy.

  51. COMPENSATION DISCUSSION AND ANALYSIS

    | What We Do | What We Don’t Do | | ☑ Provide a balanced mix of cash and equity compensation with long-term incentives accounting for 50% or more of total target compensation ☑ Grant more than 50% of long-term incentives (by target value) with performance-based vesting conditions ☑ Award variable compensation earned based on both absolute performance and performance versus peers ☑ Impose clawback requirements that apply to all our executive officers ☑ Maintain share ownership requirements for our executive officers and directors ☑ Maintain an anti-pledging policy for our executive officers and directors (subject to a limited waiver for a legacy NexTier director, which is described in "Anti-Pledging Policy" below) ☑ Maintain an anti-hedging policy for our executive officers and directors ☑ Engage independent compensation consultant ☑ Hold an annual Say-on-Pay vote and solicit more robust feedback from stockholders | ⌧ No re-pricing of options ⌧ No single trigger change-of-control severance arrangements ⌧ No dividends or dividend equivalents paid unless and until underlying award vests ⌧ No new agreements with tax gross-ups and none entered into in more than 20 years ⌧ No material perquisites to NEOs ⌧ No single trigger change-of-control equity-based grants for our executive officers |

  52. COMPENSATION DISCUSSION AND ANALYSIS

    For 2024, target total direct compensation for our NEOs was most heavily weighted toward long-term incentives, with the majority of long-term incentive compensation subject to performance-based vesting criteria, as shown below.

  53. Independent, Outside Compensation Consultant

    Independent, Outside Compensation Consultant Our Compensation Committee regularly utilizes outside compensation consultants to help assess and design our executive compensation program. These consultants are paid on either a basic, fixed-fee structure plus expenses or an hourly rate structure plus expenses. These outside consultants provide data and advice on historical compensation and stockholder returns, market trends and peer compensation practices. The Compensation Committee retained Compensation Advisory Partners (“CAP”) as its consultant and advisor for executive compensation matters from September 2023 to October 2024. In October 2024, the Compensation Committee began engaging Pay Governance LLC (“Pay Governance”) to advise on executive compensation matters. Our Compensation Committee regularly reviews the services provided by its outside consultants and has determined that the engagement of CAP did not, and the engagement of Pay Governance does not, raise any conflicts of interest. The Compensation Committee receives a confirmation certification of independence from its consultants annually. In 2024, CAP provided the Compensation Committee with information on the compensation practices of our peer group and other oilfield service companies and on the reasonableness of our program as compared to the compensation practices of our peer group. In so doing, CAP provided the Compensation Committee with information on each element of total direct compensation for our executive officers as well as a comparison of each such element of compensation against our peers and the broader oilfield services, oil and gas exploration and production and industrials markets. CAP also provided the Compensation Committee with information on the cost and potential dilution to our stockholders of our equity-based incentives and compared our equity usage to that of our peer group. During 2024, CAP and Pay Governance did not provide any services to us other than consulting services for the Compensation Committee and providing compensation benchmarking data for certain of our employee groups. The aggregate amount of fees paid to CAP and Pay Governance in 2024 for such compensation benchmarking data was $8,500. Although the decision to engage CAP and Pay Governance for this purpose was made by the Company’s human resources group, the Compensation Committee was aware of the engagement. In late 2023, CAP provided the Compensation Committee with advice regarding the establishment of a new peer group to benchmark executive pay levels for purposes of setting 2024 executive compensation, as described below. In 2025, Pay Governance reviewed this peer group with the Compensation Committee, which determined that no changes were necessary for purposes of setting 2025 executive compensation.

  54. Role of Management and Feedback of Others

    Role of Management and Feedback of Others In making compensation determinations, including annual bonus plan design and equity award grants, the Compensation Committee also seeks input from management through our CEO. Our CEO provides the Compensation Committee with reviews of the performance of other executive officers and senior managers, including the other NEOs. He also engages in an annual dialogue with our Committee Chairman and the Chairman of the Board on our compensation program and seeks their input on and review of proposals for long-term incentive grants. This process results in a recommendation that is then considered by our Compensation Committee as a whole. The Compensation Committee meets in executive session without our CEO present, and our CEO is not involved in decisions relating to his compensation. In addition to the recommendations of management and consultants, the Compensation Committee considers feedback from Patterson-UTI’s stockholders, guidelines of proxy advisory firms, reported trends in compensation, internal budgets, historical data for the Company and its peers, strategic planning updates, executive retention risk and other information that it considers relevant.

  55. 2024 Compensation Peer Group

    2024 Compensation Peer Group Following the NexTier merger, and in consideration of the Company’s larger size and increased complexity of operations, the Compensation Committee worked with CAP to establish the following 2024 compensation peer group to benchmark executive pay levels for purposes of setting 2024 executive compensation. At the time the 2024 compensation peer group was established, the Company was at the 43rd percentile for projected 2024 revenues as compared to the peer group and at the 62nd percentile for trailing twelve month EBITDA as compared to the peer group.

  56. 2024 Compensation Peer Group

    | 2024 Compensation Peer Group | | | | Antero Resources Corporation APA Corporation ChampionX Corporation Diamondback Energy, Inc. Dover Corporation | Fluor Corporation Halliburton Company Helmerich & Payne, Inc. Ingersoll Rand Inc. KBR, Inc. | Liberty Energy Inc. Nabors Industries Ltd. NOV, Inc. TechnipFMC plc Weatherford International plc |

  57. 2024 Performance Peer Group

    2024 Performance Peer Group In light of these same considerations following the NexTier merger and Ulterra acquisition, the Compensation Committee also worked with CAP to establish the following 2024 performance peer group, which is used to assess relative performance for the Company’s 2024 performance units.

  58. 2024 Performance Peer Group

    | 2024 Performance Peer Group | | | | Baker Hughes Company Ensign Energy Services Inc. Expro Group Holdings N.V. Halliburton Company | Helmerich & Payne, Inc. Liberty Energy Inc. Nabors Industries Ltd. Precision Drilling Corporation | ProFrac Holding Corp. ProPetro Holding Corp. Schlumberger Limited Weatherford International plc |

  59. 2024 Performance Peer Group

    | Components of 2024 Compensation |

  60. 2024 Performance Peer Group

    | Base Salary |

  61. 2024 Performance Peer Group

    Base salaries are reviewed annually by the Compensation Committee, which considers, among other things, competitive pay practices, the results achieved by each executive, future potential contributions, scope of responsibilities and experience, tenure, executive retention risk, cost of living increases, and the magnitude of any recent increases. In December 2023, the Compensation Committee reviewed the base salaries of our NEOs and approved the following increases effective as of January 1, 2024. Prior to these increases, and other than in connection with a promotion, our NEOs had not received a base salary increase since 2018. The Compensation Committee considered the impact of our NexTier merger and Ulterra acquisition and the significant increase in responsibilities and scope of each NEO’s role. Salaries were set to competitive levels relative to our 2024 compensation peer group.

  62. 2024 Performance Peer Group

    | NEO | 2023 ANNUAL BASE SALARY | 2024 ANNUAL BASE SALARY | | William Andrew Hendricks, Jr. | $1,000,000 | $1,300,000 | | C. Andrew Smith | $450,000 | $680,000 | | Kenneth N. Berns | $450,000 | $590,000 | | James M. Holcomb | $500,000 | $670,000 | | Seth D. Wexler | $475,000 | $650,000 |

  63. 2024 Performance Peer Group

    The annual review of base salaries by the Compensation Committee in December 2024 resulted in no changes to the base salaries of our NEOs for 2025.

  64. 2024 Performance Peer Group

    | Annual Incentive Compensation |

  65. 2024 Performance Peer Group

    In 2024, the Compensation Committee adopted an annual cash bonus program that uses multiple, pre-established objectives for determining bonus compensation. The bonus plan set a target opportunity for each executive’s annual cash bonus as a percent of salary, with payout contingent upon meeting Patterson-UTI’s financial goals and other key performance indicators (KPIs). The Compensation Committee considered the average range of performance and payouts, and the Compensation Committee believed – based on advice from its compensation consultant – that Patterson-UTI’s performance range was consistent with typical, general industry practice. All of our NEOs participated in the 2024 consolidated group level annual cash bonus program, except for Mr. Holcomb, for whom a Drilling Services and Products annual cash bonus program applied, as discussed further below. In December 2023, the Compensation Committee reviewed the target annual cash bonus opportunities as a percentage of base salary for our NEOs. To better align the bonus opportunities with the compensation peer group, the Compensation Committee approved the following changes for 2024:

  66. 2024 Performance Peer Group

    | NEO | 2023 Target Annual Cash Bonus (as a percentage of base salary) | 2024 Target Annual Cash Bonus (as a percentage of base salary) | | William Andrew Hendricks, Jr. | 125% | 125% | | C. Andrew Smith | 125% | 110% | | Kenneth N. Berns | 125% | 100% | | James M. Holcomb | 100% | 100% | | Seth D. Wexler | 80% | 100% |

  67. 2024 Performance Peer Group

    The metrics for the 2024 annual cash bonus program were generally consistent with those used in our 2023 annual cash incentive plan, with a 10% increase in the Operating Cash Flow weighting and a 5% decrease in each of the Adjusted EBITDA and strategy weightings. A summary of the weighting, description and rationale for each metric is provided in the table below.

  68. 2024 Performance Peer Group

    | 2024 ANNUAL CASH INCENTIVE METRICS | | | | Metric (Weighting) | Description | Rationale | | Operating Cash Flow (60%) | Operating Cash Flow is defined as Adjusted EBITDA (as defined below) less cash capital expenditures (as adjusted for any Board-approved increase in capital expenditures after targets are set). Target Operating Cash Flow for 2024 was set at $583.0 million, which was a $52.1 million (or 10%) increase over actual Operating Cash Flow (for purposes of the annual cash bonus program) for 2023. | Our increased focus on cash flow generation during 2024 furthered our goal of having a business model that is self-sustaining, can weather the ebbs and flows of the commodity and business cycle, can endure extreme events, and allows for return of capital to stockholders. | | Adjusted EBITDA (20%) | Adjusted EBITDA is defined as net income plus net interest expense, income tax expense and depreciation, depletion, amortization and impairment expense (including impairment of goodwill), excluding, for the purposes of the annual cash bonus program, any non-operating expenses such as M&A and restructuring costs. Target Adjusted EBITDA for 2024 was set at $1,488.5 million, which was a $479.5 million (or 48%) increase over actual Adjusted EBITDA (for purposes of the annual cash bonus program) for 2023. | The Compensation Committee continued to include Adjusted EBITDA as a metric for the 2024 program as this metric establishes a clear and consistent link to the Company’s financial performance. Additionally, Adjusted EBITDA is a significant metric used by analysts in evaluating the Company and is therefore, we believe, a key driver of the Company’s stock price. | | Health, Safety and Environmental (10%) | Holistic evaluation of HSE factors, including without limitation, maintenance of safety incident rates below industry average, reduction of motor vehicle incident rate, reduction of environmental incidents and improvement of operational audits and training. | The Compensation Committee views health, safety, and environmental factors as a component of the Company’s risk management and critical to the well-being of the Company’s employees, other personnel and the communities in which we work. | | Strategy (10%) | Taking demonstrable and meaningful actions to maximize shareholder value. This KPI represented actions that could position the Company for short-term and long-term success, such as positioning the Company to increase its return of capital to shareholders, successful integration of NexTier and Ulterra, improving the Company's balance sheet, strengthening customer relationships, pursuing strategic opportunities and taking actions in low-carbon emissions technology. | The Compensation Committee set a strategic action goal as it believed achievement of this goal would improve our competitive position, financial results and stockholder returns. |

  69. 2024 Performance Peer Group

    As compared to the 2023 annual cash bonus program, the Compensation Committee significantly increased the performance required to achieve a target payout under the financial metrics in light of anticipated improved market conditions when the targets were set and to align with strategic goals to grow Operating Cash Flow and Adjusted EBITDA. The overall annual cash bonus plan for 2024 required achievement of a threshold level of 80% of target performance on both the Operating Cash Flow and Adjusted EBITDA metrics before any payouts with respect to such metrics could be earned. Once the relevant threshold was met, the annual cash bonus opportunity attributable to the Operating Cash Flow and Adjusted EBITDA metrics was calculated based on actual performance, with a 50% payout for threshold achievement, 100% payout for target achievement, and 200% payout for maximum achievement. Linear interpolation would be used to calculate the payouts for performance between achievement levels. For the Health, Safety and Environmental KPI and the Strategy KPI, the target annual cash bonus opportunity would be based on the Compensation Committee’s holistic assessment of the achievement of the elements of each KPI and any payout above target would require material outperformance. The achievement levels and actual performance of the Health, Safety and Environmental KPI and the Strategy KPI were determined based on an evaluation of the factors described in footnotes 2 and 3 of the “2024 Annual Incentive Metrics and Percentage Payout Calculations” table below. The achievement levels under the annual cash bonus plan for our NEOs, other than Mr. Holcomb, were calculated as follows:

  70. 2024 Performance Peer Group

    | 2024 ANNUAL INCENTIVE METRICS AND PERCENTAGE PAYOUT CALCULATIONS ($ in millions) | | | | | | | | | Metrics | Threshold | Target | Maximum | Actual | Metric Achievement Percentage | Metric Weighting | Weighted Achievement Percentage | | Operating Cash Flow | $466.4 | $583.0 | $699.6 | $568.1(1) | 97% | 60% | 56% | | Adjusted EBITDA | $1,190.8 | $1,488.5 | $1,786.1 | $1,205.7(1) | 53% | 20% | 11% | | Health, Safety and Environmental | | (2) | | | 200% | 10% | 20% | | Strategy | | (3) | | | 200% | 10% | 20% | | Total | | | | | | 100% | 107% |

  71. 2024 Performance Peer Group

    _________________________ (1)As discussed above in “2024 Annual Cash Incentive Metrics,” the calculation of actual performance on the financial metrics excluded the impact of non-operating expenses, such as M&A and restructuring costs, and were adjusted for any Board-approved increase in capital expenditures after the targets were set. In addition, the Compensation Committee adjusted the metric achievement calculations to (i) exclude the impact on Adjusted EBITDA of severance costs related to the departure of a legacy NexTier executive, (ii) exclude the impact on Operating Cash Flow and Adjusted EBITDA of certain legal fees from an Ulterra legal proceeding and (iii) include in Operating Cash Flow the proceeds from the sale of assets. The Committee believed that the exclusion of these costs and fees, which resulted in immaterial changes to the calculated bonus payouts, was appropriate given that these costs and fees were substantially equivalent to M&A and restructuring costs. The Committee believed that the inclusion of proceeds from the sale of assets was advisable to appropriately reflect the net amount of capital expenditures during the year. (2)The Committee determined that the NEOs met 200% achievement for this metric based on: •the overall total recordable incident rate remaining well below the land drilling industry average (with this factor being given the most weight); •the significant reduction in the motor vehicle incident rate; •the improved training, reporting and investigations and other actions taken to reduce high potential incidents and near misses; •maintaining regulatory compliance and the reduction in the number of incidents with an environmental impact; •the improvement in operational audit and follow-up process; and •the improvement in training generally, including the development of new training programs. (3)The Committee determined that the NEOs met 200% achievement for this metric based on, among other things, (i) continued implementation of the Board’s commitment to capital discipline, the efficient management of cash flow and the return of over $400 million of capital to the Company’s shareholders in 2024, (ii) maintaining an investment grade credit rating at the three major credit ratings agencies, and the reduction of net debt, including leases, (iii) achieving synergies in excess of announced targets in respect of the NexTier merger and (iv) the addition of natural gas powered equipment to the Company’s completions fleet. The Committee further considered the Company’s successful performance under its first fully integrated drilling and completion arrangement.

  72. Drilling Services and Products Program (for Mr. Holcomb)

    Drilling Services and Products Program (for Mr. Holcomb) In his role as Executive Vice President and Chief Business Officer, Mr. Holcomb oversees the Company’s Drilling Services and Drilling Products segments (collectively referred to herein as “Drilling Services and Products”). For Mr. Holcomb’s 2024 annual cash bonus opportunity, the metrics and weightings were Drilling Services and Products Operating Cash Flow (60%), Drilling Services and Products Adjusted EBITDA (20%), Health, Safety and Environmental for Drilling Services and Products (10%) and Strategy for Drilling Services and Products (10%). Mr. Holcomb’s metrics were specifically tailored to Drilling Services and Products in order to focus on the portion of our business over which he had the most impact during 2024 as Executive Vice President and Chief Business Officer. The calculated payouts for Mr. Holcomb in respect of these metrics were determined based on the achievement in 2024 of: •Drilling Services and Products Operating Cash Flow of $491.9 million, compared to a targeted Operating Cash Flow of $535.3 million for Drilling Services and Products, resulting in 80% achievement of this metric. For the reasons discussed in Footnote 1 immediately above, the Committee adjusted the calculation by excluding the impact of certain legal fees from an Ulterra legal proceeding and including the proceeds from the sale of assets; •Drilling Services and Products Adjusted EBITDA of $816.1 million, compared to a targeted Adjusted EBITDA of $876.1 million for Drilling Services and Products, resulting in 83% achievement of this metric. For the reasons discussed in Footnote 1 immediately above, the Committee adjusted the calculation by excluding the impact of certain legal fees from an Ulterra legal proceeding; •the Committee’s assessment of 200% achievement for Drilling Services and Products on the Health, Safety and Environmental KPI as a result of the items listed in footnote 2 immediately above with respect to Drilling Services and Products; and •the Committee’s assessment of 200% achievement for Drilling Services and Products on the Strategy KPI as a result of (i) notwithstanding his transition in responsibilities, his instrumental role in the operational and organizational integrations of both NexTier and Ulterra, (ii) advanced deployment of multiple new technologies and improved operational efficiencies in the Drilling Services segment and (iii) growth of international revenue in the Drilling Products segment. As a result, Mr. Holcomb’s payout under his Drilling Services and Products bonus program was based on the achievement in 2024 of 104% of target. The applicable payout percentage was applied to each executive’s bonus target as follows to determine actual 2024 cash bonus payments:

  73. Drilling Services and Products Program (for Mr. Holcomb)

    | 2024 ANNUAL INCENTIVE CASH BONUS | | | | | NEO | Target Bonus | Bonus Payout (as a % of Target, rounded) | Actual Bonus | | William Andrew Hendricks, Jr. | $1,625,000 | 107% | $1,733,000 | | C. Andrew Smith | $748,000 | 107% | $798,000 | | Kenneth N. Berns | $590,000 | 107% | $629,000 | | James M. Holcomb | $670,000 | 104% | $700,000 | | Seth D. Wexler | $650,000 | 107% | $693,000 |

  74. Drilling Services and Products Program (for Mr. Holcomb)

    | Other Bonuses |

  75. Drilling Services and Products Program (for Mr. Holcomb)

    | Long-Term Incentive Compensation |

  76. Drilling Services and Products Program (for Mr. Holcomb)

    | 2024 Long- Term Incentive Award Type | 2024 Award Design | Alignment with Philosophy | | Restricted Stock Units (49% of LTI Mix) | •Time-vested units that are settled in shares of stock •1/3 of each award vests annually over a three-year period | •Value dependent upon stock price performance •Enhances retention of executive talent •Encourages long-term share ownership | | Performance Units (51% of LTI Mix) | •Performance-vested units that are settled in shares of stock •Number of units earned depends upon TSR performance relative to our peers over one-, two- and three-year periods, each commencing on April 1, 2024 (each, a “performance period”) •No shares will vest and be delivered until after completion of the three-year performance period •Relative TSR calculation for 2024 performance units includes the performance peer group members listed above •For each of the performance periods: ◦No shares are earned for performance below the 25th percentile ◦Target shares are not earned unless performance is at the 55th percentile ◦Maximum shares are not earned unless performance is at the 75th percentile or above ◦No greater than the target amount of shares may be earned for each of the one- and two-year performance periods, unless absolute TSR during the three-year performance period is greater than absolute TSR, as applicable, for the one- and/or two-year performance period, in which case, the number of shares earned in respect of the one- and/or two-year performance period, as applicable, will be determined as if our absolute TSR during the three-year performance period was our absolute TSR during the one- and/or two-year performance period •Total payout is capped at “target” amount if absolute TSR during the three-year performance period is not positive | •Performance-contingent •Number of shares dependent upon performance relative to peers and absolute performance •Value of shares dependent upon stock price •Above median performance is required to achieve a target payout •Multiple performance periods during the three-year period incentivizes relative and absolute stock outperformance throughout the three-year period •Three-year vesting period provides for a retention incentive |

  77. Drilling Services and Products Program (for Mr. Holcomb)

    | 2024 Long-Term Incentive Grants |

  78. Drilling Services and Products Program (for Mr. Holcomb)

    | 2024 Long-Term Incentive Grants | | | NEO | 2024 Target Value | | William Andrew Hendricks, Jr. | $8,500,000 | | C. Andrew Smith | $2,100,000 | | Kenneth N. Berns | $1,750,000 | | James M. Holcomb | $2,000,000 | | Seth D. Wexler | $1,800,000 |

  79. Drilling Services and Products Program (for Mr. Holcomb)

    | Payout in 2024 of 2021 Performance Unit Awards |

  80. Drilling Services and Products Program (for Mr. Holcomb)

    | 2021 Performance Unit Awards | | | | | (Performance Period Ended in 2024) | | | | | | Units Granted | Payout Multiplier | Units Earned | | | # | % | # | | William Andrew Hendricks, Jr. | 370,500 | 87.9% | 325,669 | | C. Andrew Smith | 139,000 | 87.9% | 122,181 | | Kenneth N. Berns | 138,600 | 87.9% | 121,829 | | James M. Holcomb | 77,400 | 87.9% | 68,034 | | Seth D. Wexler | 92,000 | 87.9% | 80,868 |

  81. Other Executive Compensation Matters

    | Equity Award Grant Practices |

  82. Other Executive Compensation Matters

    Although Patterson-UTI does not currently grant stock options, restricted stock unit and performance unit award target values are typically approved at our regularly scheduled compensation committee meetings near the end of April. The number of units granted is then calculated based on our closing stock price after the completion of two full trading days following the filing of our Form 10-Q for the first quarter. Patterson-UTI may also grant awards at other times during the year, typically in connection with new hires or promotions, and may change its equity grant practices in the future. During 2024, the Compensation Committee did not consider material non-public information when determining the timing or terms of equity awards, and Patterson-UTI did not time the disclosure of material non-public information for the purpose of affecting the value of executive compensation.

  83. Employment, Change in Control and Severance Agreements

    Employment, Change in Control and Severance Agreements Employment Agreements. Patterson-UTI is party to an employment agreement with each of Messrs. Hendricks, Wexler, Holcomb and Smith. Each employment agreement generally has an initial three-year term, and unless earlier terminated as provided therein, has a one year automatic annual extension each year. Each employment agreement provides for a specified base salary, subject to any increases that may be granted in the future. The employment agreements also provide for, among other things, severance payments following termination by Patterson-UTI of the executive other than for cause, or termination by the executive for good reason (as defined in the employment agreement). As discussed in more detail below, the employment agreements contain change in control provisions. Holcomb Letter Agreements. Mr. Holcomb has served as an employee of the Company for over 25 years, including serving as a key member of the Company’s executive team for over 10 years, and the Compensation Committee believes that Mr. Holcomb is instrumental to the Company’s future success. Prior to the closing of the NexTier merger, Mr. Holcomb served as the Company’s Chief Operating Officer, with responsibility for overseeing the Company’s completions business. Pursuant to the terms of the merger agreement with NexTier, oversight of the Company’s completion business was removed from Mr. Holcomb’s duties, which triggered Mr. Holcomb's right to resign for "good reason" and receive severance benefits per his employment agreement. To encourage Mr. Holcomb to remain employed with the Company at the time of the closing of the NexTier merger, Patterson-UTI entered into a letter agreement with Mr. Holcomb that provided for his transition to the role of Executive Vice President and Chief Business Officer. This letter agreement further provided that, following the one-year anniversary of the closing of the NexTier merger, Mr. Holcomb would no longer have “good reason” to terminate his employment with Patterson-UTI due to the transition of his role in connection with the NexTier merger and any resulting changes in his authority, duties or responsibilities. The letter agreement also provides a $2 million cash retention bonus, payable in eight quarterly installments following the closing of the NexTier merger (with the first installment paid in December 2023), subject to Mr. Holcomb’s continued employment in good standing with Patterson-UTI on each applicable payment date. Any unpaid portions of Mr. Holcomb’s retention bonus will become payable if he is terminated by Patterson-UTI without cause or he resigns for good reason. In August 2024, Patterson-UTI entered into a second letter agreement with Mr. Holcomb, modifying certain terms of his employment agreement. Specifically, Mr. Holcomb may continue in his role as Executive Vice President and Chief Business Officer of the Company until (i) December 31, 2026 (if Mr. Holcomb so elects and provides at least three months’ prior notice to the Company), or (ii) December 31, 2027 (as applicable, the “Transition Date”). From the Transition Date through September 30, 2030, Mr. Holcomb has agreed to serve as a non-executive advisor, providing transition and advisory services as and when reasonably requested by the Company’s Chief Executive Officer or his designee. During such advisory period, Mr. Holcomb will receive a reduced base salary at 55% of the level in effect on the Transition Date but will receive no further bonuses or grants under the Company’s cash or equity-based incentive programs. The Compensation Committee expects that Mr. Holcomb's continued service during his transition period will be highly beneficial to the Company due to his lengthy tenure with the Company, and in particular due to his experience with, and knowledge of, the Company's Drilling Services business. During the transition period, Mr. Holcomb is expected to provide, among other things, assistance with the retention of key customer relationships, as well as advice and support to executive leadership and the leadership teams within the Drilling Services, Completion Services and Drilling Products segments. Mr. Holcomb will not be entitled to any severance payments and benefits upon his termination of employment on September 30, 2030, and if Mr. Holcomb voluntarily resigns prior to September 30, 2030, he will not be eligible for any benefits under the Company’s continuing award program for qualified retirees or accelerated vesting of any performance-based equity awards on account of a termination of employment due to retirement. Except as expressly modified by these letter agreements, the terms of Mr. Holcomb’s employment agreement remain in force and effect and govern the terms of his employment. Change in Control Agreements and Tax Gross-Up Payments. Patterson-UTI entered into a change-in-control agreement with Mr. Berns in 2004 and employment agreements with Messrs. Hendricks, Smith, Holcomb and Wexler in recent years that contain change-in-control provisions, as further described below. Patterson-UTI believes that such agreements may under certain circumstances protect Patterson-UTI’s interest by discouraging the NEOs from leaving employment out of concern for the security of their jobs or from otherwise being unable to concentrate on their work. We believe that the change in control agreements may also help Patterson-UTI attract and retain new key employees by reducing the personal uncertainty and anxiety that arises from the possibility of a future business combination. Any future change in control or severance agreements will be approved subject to the circumstances existing at the time. As was customary when the change in control agreement with Mr. Berns was entered into more than twenty years ago, the change-in-control agreement provides Mr. Berns with a full gross-up payment for any excise taxes imposed on payments and benefits received under the change-in-control agreement or otherwise, including other taxes that may be imposed as a result of the gross-up payment. As indicated above, the Compensation Committee subsequently adopted a policy, more than ten years ago, to no longer approve tax gross-ups in connection with compensation arrangements, and the employment agreements entered into with Messrs. Hendricks, Smith, Holcomb and Wexler, which are described above, do not include a tax gross-up provision. Severance Agreement. In order to address prior severance agreements between UTI Energy Corp. and Mr. Berns, Patterson-UTI has entered into a written letter agreement with Mr. Berns pursuant to which Patterson-UTI has agreed to pay Mr. Berns within ten days of the termination of his employment with Patterson-UTI for any reason (including voluntary termination by him), an amount in cash equal to his annual base salary at the time of such termination. Any payment made by Patterson-UTI pursuant to this letter agreement will reduce dollar for dollar any payment owed to Mr. Berns, if any, pursuant to the change-in-control agreement referenced above. Qualified Retiree Program. During 2024, the Compensation Committee approved and adopted the Patterson-UTI Energy, Inc. Qualified Retiree Program (the “Retiree Program”) for certain senior employees of the Company, including the NEOs. Under the Retiree Program, eligible employees who retire after providing at least six months’ prior notice and (i) are at least 55 years of age and (ii) have completed at least five total years of service with Patterson-UTI (with at least five continuous years of service completed as of immediately prior to the retirement date), will receive the following benefits: •continued vesting of any unvested equity-based awards outstanding as of the retirement date that are subject solely to time-based vesting conditions; and

  84. Employment, Change in Control and Severance Agreements

    •continued eligibility to earn a pro-rata annual bonus for the year of retirement based on actual Company performance relative to all applicable performance objectives. If a participant in the Retiree Program is terminated by Patterson-UTI or any of its subsidiaries without cause after having provided the requisite notice of retirement but before his or her retirement date, the participant will also receive the benefits described above. We believe that the Retiree Program provides a framework for senior employees, including our NEOs, transitioning into retirement to remain incentivized to transfer knowledge and assist in long-term organizational success following their retirement, thereby benefiting Patterson-UTI. Messrs. Hendricks, Holcomb and Berns currently meet the age and service requirements for retirement under the Retiree Program. We believe the employment agreements, the Holcomb letter agreements, the change-in-control agreement, the severance agreement and the Retiree Program are important components of our overall executive compensation program. These agreements and program set forth the manner by which the employment relationship may be extended or terminated, the compensation and benefits that we provide during the term of employment and the obligations each party has in the event of termination of the executive officer’s employment. We believe that severance protections, particularly in the context of a change-in-control transaction, play a critical role in attracting and retaining key executive officers. Providing this type of protection is common in the oilfield services industry. In addition, these benefits serve our interests by promoting a continuity of management and aligning management’s interests with those of our stockholders in the context of an actual or threatened change in control transaction.

  85. Employment, Change in Control and Severance Agreements

    | Compensation Committee Report |

  86. Employment, Change in Control and Severance Agreements

    The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with management and, based upon such review and discussion, the Compensation Committee has recommended to the Board that the Compensation Discussion and Analysis be included in this proxy statement.

  87. Employment, Change in Control and Severance Agreements

    | Gary M. Halverson, Chair | | Tiffany (TJ) Thom Cepak | | Curtis W. Huff | | Amy H. Nelson |

  88. EXECUTIVE COMPENSATION

    | Summary Compensation Table |

  89. EXECUTIVE COMPENSATION

    | Name and Principal Position(s) | Year | Salary ($) | Bonus ($)(1) | Stock Awards ($)(2) | Non-equity Incentive plan Compensation ($)(3) | All Other Compensation ($)(4) | Total ($) | | William Andrew Hendricks, Jr. | 2024 | 1,300,000 | — | 9,004,376(5) | 1,733,000 | 13,800 | 12,051,176 | | President & Chief | 2023 | 1,000,000 | — | 5,930,679 | 1,340,129 | 13,200 | 8,284,008 | | Executive Officer | 2022 | 1,000,000 | — | 7,768,767 | 2,187,500 | 12,200 | 10,968,467 | | C. Andrew Smith | 2024 | 680,000 | 360,000 | 2,225,112(6) | 798,000 | 13,800 | 4,076,912 | | Executive Vice President & | 2023 | 450,000 | — | 2,076,670 | 603,058 | 13,200 | 3,142,928 | | Chief Financial Officer | 2022 | 450,000 | — | 2,718,489 | 984,375 | 12,200 | 4,165,064 | | Kenneth N. Berns | 2024 | 590,000 | 300,000 | 1,853,888(7) | 629,000 | — | 3,372,888 | | Executive Vice President & | 2023 | 450,000 | — | 1,976,893 | 603,058 | — | 3,029,951 | | Chief Commercial Officer | 2022 | 450,000 | — | 2,588,724 | 984,375 | — | 4,023,099 | | James M. Holcomb | 2024 | 670,000 | 1,000,000 | 2,118,692(8) | 700,000 | 13,800 | 4,502,492 | | Executive Vice President & | 2023 | 513,635 | 250,000 | 1,694,098 | 536,051 | 13,200 | 3,006,984 | | Chief Business Officer | 2022 | 465,000 | 224,000 | 1,553,892 | 651,000 | 12,200 | 2,906,092 | | Seth D. Wexler | 2024 | 650,000 | 460,000 | 1,907,098(9) | 693,000 | 13,800 | 3,723,898 | | Executive Vice President, General | 2023 | 475,000 | — | 1,531,624 | 407,399 | 13,200 | 2,427,223 | | Counsel & Secretary | 2022 | 475,000 | — | 2,007,723 | 665,000 | 12,200 | 3,159,923 |

  90. EXECUTIVE COMPENSATION

    | Grants of Plan-Based Awards |

  91. EXECUTIVE COMPENSATION

    | Outstanding Equity Awards at Fiscal Year-End |

  92. EXECUTIVE COMPENSATION

    | Option Exercises and Stock Vested |

  93. EXECUTIVE COMPENSATION

    | No Pension Benefits or Nonqualified Deferred Compensation |

  94. Employment, Change in Control and Severance Agreements

    | Potential Payments Upon a Termination or Change in Control |

  95. Employment, Change in Control and Severance Agreements

    | | Cash Payments | | Other Benefits | | | | | Name | Bonus Payment ($)(1) | Salary and Bonus ($)(2) | Stock Awards ($)(3) | Performance Unit Awards ($)(4) | Other Benefits ($)(5) | Total ($) | | William Andrew Hendricks, Jr. | $2,187,500 | $8,990,129 | $4,904,788 | $6,821,934 | $48,436 | $22,952,787 | | C. Andrew Smith | $984,375 | $3,608,798 | $1,399,797 | $2,057,566 | $37,758 | $8,088,294 | | Kenneth N. Berns | $1,397,022 | $2,707,039 | $1,241,759 | $1,865,108 | $— | $7,210,928 | | James M. Holcomb | $651,000 | $3,051,709 | $1,203,763 | $1,655,304 | $21,100 | $6,582,876 | | Seth D. Wexler | $665,000 | $2,914,499 | $1,123,360 | $1,613,178 | $40,363 | $6,356,400 |

  96. Employment, Change in Control and Severance Agreements

    | Pay Ratio |

  97. Employment, Change in Control and Severance Agreements

    | Pay Versus Performance |

  98. Employment, Change in Control and Severance Agreements

    | Pay Versus Performance Table |

  99. Employment, Change in Control and Severance Agreements

    | | | | | | Value of Initial Fixed $100 Investment Based On: | | | | | Year | Summary Compensation Table Total for PEO ($) | Compensation Actually Paid to PEO ($) (1) | Average Summary Compensation Table Total for Non-PEO Named Executive Officers ($) (2) | Average Compensation Actually Paid to Non-PEO Named Executive Officers ($) (2) (3) | Total Shareholder Return | Peer Group Total Shareholder Return (4) | Net Income (Loss) ($ in thousands) | Operating Cash Flow ($ in millions) (5) (6) | | 2024 | $12,051,176 | $6,373,765 | $3,919,048 | $2,454,344 | 87 | 102 | $(966,399) | $568.1 | | 2023 | $8,284,008 | $(9,501,753) | $2,901,772 | $(2,575,133) | 110 | 115 | $245,952 | $530.9 | | 2022 | $10,968,467 | $32,675,932 | $3,563,545 | $9,767,320 | 168 | 113 | $154,658 | $332.3 | | 2021 | $8,017,005 | $14,736,737 | $2,696,782 | $4,588,122 | 83 | 70 | $(654,545) | $49.0 | | 2020 | $3,722,515 | $1,228,134 | $1,089,349 | $710,831 | 51 | 58 | $(803,692) | $86.5 |

  100. Employment, Change in Control and Severance Agreements

    | Compensation Actually Paid to PEO | 2024 | | Summary Compensation Table Total | $12,051,176 | | Less, value of Stock Awards reported in Summary Compensation Table | $9,004,376 | | Plus, year-end fair value of outstanding and unvested equity awards granted in the year | $5,867,696 | | Plus (less), year over year change in fair value of outstanding and unvested equity awards granted in prior years | $(3,350,624) | | Plus (less), change in fair value from prior year-end to vesting date of equity awards granted in prior years that vested in the year | $809,893 | | Total | $6,373,765 |

  101. Employment, Change in Control and Severance Agreements

    | Average Compensation Actually Paid to Other Named Executive Officers | 2024 | | Average Summary Compensation Table Total | $3,919,048 | | Less, average value of Stock Awards reported in Summary Compensation Table | $2,026,198 | | Plus, average year-end fair value of outstanding and unvested equity awards granted in the year | $1,320,305 | | Plus (less), average year over year change in fair value of outstanding and unvested equity awards granted in prior years | $(1,002,558) | | Plus (less), change in fair value from prior year-end to vesting date of equity awards granted in prior years that vested in the year | $243,747 | | Total | $2,454,344 |

  102. Employment, Change in Control and Severance Agreements

    | Most Important Measures Used to Link Executive Compensation Actually Paid to Company Performance | | Absolute Total Stockholder Return | | Relative Total Stockholder Return | | Operating Cash Flow | | Adjusted EBITDA | | Health, Safety and Environmental Performance |

  103. Employment, Change in Control and Severance Agreements

    | Relationship Between Compensation Actually Paid and TSR, Net Income and Company-Selected Measure |

  104. DIRECTOR COMPENSATION

    DIRECTOR COMPENSATION The following table sets forth information concerning compensation for the fiscal year ended December 31, 2024 with respect to the directors of Patterson-UTI who are not executive officers:

  105. DIRECTOR COMPENSATION

    | Name | Fees earned or paid in cash ($) | Stock awards ($)(1) | Option awards ($)(2) | All other compensation ($) | Total ($) | | Leslie A. Beyer | $115,000 | $174,992 | $— | $— | $289,992 | | Tiffany (TJ) Thom Cepak | $135,000 | $174,992 | $— | $— | $309,992 | | Robert W. Drummond | $107,500 | $174,992 | $— | $2,475,000(3) | $2,757,492 | | Gary M. Halverson | $130,000 | $174,992 | $— | $— | $304,992 | | Curtis W. Huff | $187,500 | $244,998 | $— | $— | $432,498 | | Cesar Jaime | $117,500 | $174,992 | $— | $— | $292,492 | | Janeen S. Judah | $117,500 | $174,992 | $— | $— | $292,492 | | Amy H. Nelson | $125,000 | $174,992 | $— | $— | $299,992 | | Julie Robertson | $125,000 | $174,992 | $— | $— | $299,992 | | James C. Stewart | $125,000 | $174,992 | $— | $— | $299,992 |

  106. DIRECTOR COMPENSATION

    _______________ (1)Amounts represent the fair value at the date of grant as determined in accordance with FASB ASC Topic 718 with respect to restricted stock units awarded to the directors in the fiscal year ended December 31, 2024. For additional information related to the assumptions used and valuation of restricted stock units, see Note 12 to the consolidated financial statements in Patterson-UTI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Mses. Beyer, Cepak, Judah, Nelson and Robertson and Messrs. Drummond, Halverson, Jaime and Stewart received an award of 16,203 restricted stock units, and Mr. Huff received an award of 22,685 restricted stock units, on January 1, 2024 with a grant date value of $10.80 per restricted stock unit. (2)No options were issued to directors during the fiscal year ended December 31, 2024. As of December 31, 2024, Ms. Cepak and Mr. Huff held the following options to purchase shares of Common Stock:

  107. DIRECTOR COMPENSATION

    | | Number of Securities Underlying Unexercised Options (#) | | | | Name | Exercisable | Unexercisable | Total | | Tiffany (TJ) Thom Cepak | 10,000 | — | 10,000 | | Curtis W. Huff | 10,000 | — | 10,000 |

  108. DIRECTOR COMPENSATION

    (3)Amounts reflect severance paid to Mr. Drummond in 2024. Prior to the NexTier merger, NexTier and Mr. Drummond were party to an employment agreement pursuant to which Mr. Drummond became eligible to receive severance benefits upon his qualifying termination of employment, which occurred immediately following the closing of the NexTier merger in 2023. Accordingly, Mr. Drummond entered into a Separation Agreement and General Release of Claims with NexTier, effective as of September 1, 2023, which provides for, among other severance amounts, a cash amount equal to three times the sum of his annual base salary plus annual target bonus, payable over 36 months (of which $2,475,000 was paid in 2024). Directors who are also employees of Patterson-UTI do not receive compensation for serving as a director or as a member of a committee of the Board of Directors. All directors are reimbursed for reasonable out-of-pocket expenses incurred in connection with serving as a member of the Board of Directors. The Compensation Committee annually reviews director compensation using a director compensation peer benchmarking process, and recommends any changes to the Board of Directors for approval. No changes were made to director compensation following the most recent annual review in December 2024. The current compensation for non-employee directors is as follows: Each non-employee director receives an annual base cash retainer of $100,000 and an award of restricted stock units on January 1 of each year with a grant date value of $175,000. The non-Executive Chairman receives an additional annual cash retainer of $70,000 and an award of additional restricted stock units with a grant date value of $70,000. At times while the Board has an Executive Chairman, the Lead Director receives an additional annual cash retainer of $20,000. Each non-employee director receives additional annual cash retainers for the committees on which he or she serves as follows:

  109. DIRECTOR COMPENSATION

    | | Chair | Member | | Compensation Committee | $20,000 | $10,000 | | Nominating and Corporate Governance Committee | $15,000 | $7,500 | | Audit Committee | $25,000 | $10,000 | | Sustainability Committee | $15,000 | $7,500 |